1 Magnificent Canadian Stock Down 22% to Buy and Hold Forever

Despite the TSX continuing to make new all-time highs and hover around all-time high levels at the time of writing, certain stocks do appear to be relative value plays. For those thinking about high-growth stocks and ways to play such long-term trends, a few names pop out to me as key investing opportunities in 2026 and for the long haul.

Here’s one key Canadian growth stock I think could be an excellent opportunity, down more than 22% over the past year at the time of writing.

Kinaxis

Shares of Canadian supply chain management software company Kinaxis (TSX:KXS) have been on a rough ride of late.

The chart above highlights what I’m talking about. Despite being a niche leader in cloud-based supply chain planning, there’s been a tech-driven sell-off of companies tied to the AI revolution that’s been rather discriminate of late. Accordingly, given Kinaxis’ ties to this trend with its AI integrations and growth prospects, this is a stock that’s been hit.

That said, as a leader in the supply chain software sector, Kinaxis’ ability to help global enterprises orchestrate complex operations in real time should benefit investors looking to capitalize on a world still grappling with geopolitical tensions, shifting trade routes, and rising demand volatility.

In short, the need for better, faster supply chain decisions is secular, not cyclical. That long-term demand backdrop is showing up in the numbers. Kinaxis’ annual recurring revenue has climbed to about US$407 million, up 17% year over year, while its remaining performance obligations sit around US$846 million, with SaaS RPO at roughly US$810 million. This is precisely the kind of forward visibility most software companies would love to have.

Why Kinaxis is a fundamental growth story to consider

Recent quarterly results reinforce this story. In Q3 2025, Kinaxis grew total revenue 11% year over year, with SaaS revenue up 17%, and boosted adjusted EBITDA 13%, for a strong 25% gross margin. Additionally, free cash flow for the last 12 months has approached a near-20% margin, even after one-off items. This highlights a business that can both grow and throw off cash.

The company’s management team has raised or tightened guidance more than once, now calling for 2025 total revenue of US$535 to US$550 million and SaaS growth of roughly the mid-teens, alongside an adjusted EBITDA margin of 24–26%. For a company whose stock is slumping, the operating trend looks remarkably resilient.

Why this is an opportunity to consider right now  

Even after Kinaxis’ recent stock price decline, this is a top Canadian growth stock that now trades at a much more reasonable multiple. Yes, this is a stock with a premium multiple. However, the company’s asset-light, sticky SaaS model and above-average growth is deserving of such a multiple.

When investors rotate out of richly-valued tech, names like Kinaxis often get hit first. That can happen regardless of how excellent a given company’s fundamentals are. And it’s important to note that analysts remain broadly constructive on Kinaxis, with a consensus “Buy” rating and an average price target near $224.

I think this implies substantial upside from recent levels around the $130 level. In my view, that disconnect between sentiment and fundamentals is where opportunity lives.

The post 1 Magnificent Canadian Stock Down 22% to Buy and Hold Forever appeared first on The Motley Fool Canada.

Should you invest $1,000 in Kinaxis Inc. right now?

Before you buy stock in Kinaxis Inc., consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and Kinaxis Inc. wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,155.76!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 90%* – a market-crushing outperformance compared to 81%* for the S&P/TSX Composite Index. Don’t miss out on our top 10 stocks, available when you join our mailing list!

Get the 10 stocks instantly #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of February 17th, 2026

More reading

• 2 Stocks to Buy as Canada Levels Up Productivity
• Canadian AI Stocks With Solid Fundamentals
• Too Much U.S. Tech? 1 TSX Stock I’d Add Today
• TSX Today: What to Watch for in Stocks on Friday, February 6
• 3 Canadian Stocks That Could Create Lasting Generational Wealth

Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Kinaxis. The Motley Fool has a disclosure policy.